SOCAN Tariff for Adult Entertainment Clubs

Summary#

This Canada Gazette notice publishes SOCAN Tariff 3.C – Adult Entertainment Clubs (2026-2028). It sets the royalty that adult entertainment clubs must pay to play recorded music during 2026 to 2028, and it lays out reporting, payment, audit, interest, and confidentiality rules. The notice was published on October 11, 2025.

What it does#

• Sets the royalty rate at 6.71¢ per day, multiplied by the club’s authorized capacity (seating + standing) as shown on its liquor licence or other official document.
• Applies to the performance, by means of recorded music, at any time and as often as wanted during 2026 to 2028.
• Defines a “day” as the period between 6:00 a.m. on one day and 6:00 a.m. the next day while the venue operates as an adult entertainment club.
• Requires a user to file an estimated report and pay the estimated royalty no later than January 31 of the year covered by the tariff.
• Requires a final report of actual days operated and authorized capacity, and any adjustment to royalties, no later than January 31 of the following year.
• Charges interest on late payments at a rate equal to 1% above the Bank Rate published by the Bank of Canada, calculated daily and not compounded.
• Gives SOCAN the right to audit a user’s books and records on reasonable notice during normal business hours.
• Treats submitted information as confidential but allows sharing with agents, service providers, Re:Sound, the Copyright Board, and others in specific situations; service providers must sign confidentiality agreements.

Who's affected#

• Businesses that operate as adult entertainment clubs in Canada and play recorded music.
• Club owners, managers, and accountants who handle licensing and royalty payments.
• Entities that handle liquor licences or similar official capacity documents (because capacity on those documents is used to calculate the fee).
• SOCAN and Re:Sound (as parties involved in collection and enforcement).
  If it’s unclear whether a particular venue counts as an “adult entertainment club,” the notice itself does not define that beyond the tariff title, so affected parties may need to check with SOCAN or legal counsel.

Why it matters#

• The cost is tied to the venue’s licensed capacity and days open, so larger clubs pay more and smaller clubs pay less. For example, a club with capacity 100 would owe $6.71 per day under this formula (6.71¢ × 100 = $6.71).
• Clubs must budget for these recurring daily fees for the three-year period 2026 to 2028, and meet the January 31 reporting deadlines or face adjustments and interest.
• The audit and reporting rules mean clubs should keep accurate records of capacity and days operated.
• Confidentiality rules let SOCAN share submitted information with certain parties (including Re:Sound), which may matter to clubs concerned about how their data is used.